A simple bookkeeping setup you can finish in one afternoon
Good books do not need fancy software. They need a few habits, done the same way each week. You can set this up in an afternoon.
1. Open a separate business account
Even as a sole proprietor, use a business checking account for all service income and business expenses. If you use a card, get a business card. Mixing personal and business spending is the number one cause of messy books.
2. Pick your tool
A spreadsheet is fine to start. A bookkeeping app saves time once you have more transactions. Either works if you use it every week.
3. Set up your categories
| Income | Expenses |
|---|---|
| Services Retail products Tips Other income | Rent (booth or suite) Products and supplies Tools and equipment Training and licenses Insurance Marketing Software and booking fees Card processing fees Phone and internet Travel and mileage Laundry and cleaning Professional fees |
4. A 15-minute weekly routine
- Record this week's income from your booking and card payouts.
- Sort each expense into a category.
- Photograph and save receipts.
- Move your tax set-aside to your savings account.
5. A 30-minute month-end check
- Match your records to your bank statement.
- Check that payouts match your appointments.
- Look at what you earned and what is left.
Two things that trip people up
- Card payouts arrive net of fees. Record the full price as income and the fee as an expense. Otherwise your income looks too low.
- Paying yourself is not an expense. Transfers to your personal account are owner's draws.
Cash and tips? Write them down the same day. Memory fades fast.
Get the printable version in the starter kit.
This is general education, not tax or legal advice. Rules change and every situation is different. A licensed tax professional can tell you what applies to you.
Rather have it done for you?
We can clean up what you have and keep it up each month.